Accendra Health (ACH) Q4 2015 earnings summary

Executive summary

• Record 2015 adjusted EPS of $2.00, up from $1.76 in 2014, as adjusted operating earnings improved in both segments.

• A transformation agenda targets stronger domestic services, improved execution of growth strategies, and sustained profitable growth through new services and global capabilities.

Financial highlights

• 2015 revenue rose 3.5% YoY to $9.773B; gross margin increased 3.8% to $1.215B.

• GAAP net income was $103.4M versus $66.5M in 2014; diluted EPS was $1.65 versus $1.06.

• Adjusted operating earnings reached $227.3M versus $202.5M; adjusted net income was $125.3M versus $110.1M.

• Q4 revenue was $2.488B, net income $32.1M, and diluted EPS $0.51.

Outlook and guidance

• Focus is on consistent earnings growth while investing in the business and expanding healthcare solutions.

• Approximately $20.0M of acquisition-related and exit/realignment charges was expected in 2016 for activities in Domestic and International.

• 2016 priorities include simplifying domestic operations, improving standard procedures, optimizing Europe, and developing CPS and global sourcing.